Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Peter Schiff: It’s Not Just the Stock Market; It’s the Economy

  by    0   1

There was no Santa Clause rally on Christmas Eve. Instead, US stock markets continued to tank. The Dow Jones dropped 653 points. The S&P 500 fell another 2.7% and officially entered into bear territory. It was the worst Christmas Eve’s on Wall Street in history. The Washington Post put it in stark terms.

By the end of Monday’s shortened holiday trading session, the great bull market that began in the lows of March 2009 lay lifeless, capping a three-week, 16 percent sell-off of the S&P 500.”

As Peter Schiff put it, “The Grinch stole the Santa Clause rally.”

It’s now official. Wall Street can stop pretending that it’s a correction. They have to admit that it’s a bear market.”

Interestingly, there is still quite a bit of complacency. Peter said he doesn’t really see investors panicking-  yet.

I do think people are a little worried about the market now, but they’re not worried about the overall economy. They still don’t get it. They still haven’t connected the dots between the stock market and the economy.”

Peter said this is not just your run-of-the-mill bear market.

Most people, if I listen to these experts talk about it, ‘OK, it’s a bear market. Oh, been there, done that. No big deal. Yes, we’ve had bear markets before but hey, it’s an opportunity to buy stocks.’  … People still think it’s a regular bear market. It’s not.”

What makes this bear market different is the bull market that preceded it. Not only was it the longest bull market in history, it’s the first bull market totally created by the Federal Reserve.

This is the mania that the Fed built. And it was built on quantitative easing, which we have never done before, zero percent interest rates, which we never had before. And not only was this a stock market entirely built by monetary policy, but this was probably the first time the entire economy has rested on the foundation of that stock market bubble. This was all about the market, about confidence, about the wealth effect. And so when this bull market ends, this phony recovery that was built on that phony foundation comes collapsing down.  And people don’t get that yet.”

This is not just the stock market going down. The economy is going into recession, and the bubble has grown for so long and gotten so big, nobody realizes it has popped.

When you are in a bubble and don’t recognize that you are in a bubble you never know that the bubble has popped. You don’t see any of the signs because you don’t even know to look for the signs. And all you do is try to rationalize what’s going on and try to minimize the significance. But when the Fed does come back with QE and zero percent rates, initially it will be heralded as good news …  No! Because this time it isn’t going to work. As soon as they do that, the dollar’s decline is going to turn into a rout. Gold’s rally is going to turn into a rocket ship up. And the economy is not going to recover. It’s going to sink. We’ll go from recession to stagflation.”

Peter goes on to talk about the political ramifications. He said in the end, Trump is going to come out looking a lot like Jimmy Carter.

Gold IRA Rollover to 401k

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Why Don’t Millennials Care About Gold? Actually, They Do

Gold Flows into ETFs for Second Straight MonthDo millennials get gold? If you embrace the stereotypes, you may think not. After all, millennials have both feet firmly planted in the digital world. Gold is pretty “old-fashioned.” You might assume they would be far more interested in cryptocurrencies. Or perhaps you just figure millennials aren’t investing at all. But as it turns out, […]

READ MORE →

The Fed Isn’t the Only Game in Town: The ECB Takes a Decidedly Dovish Turn

All eyes will focus on the Federal Reserve as it wraps up its June meeting. But it’s important to remember the Fed isn’t the only game in town. Moves by the European Central Bank also have a significant impact on the global economy (and the gold market) and it has taken a decidedly dovish turn. […]

READ MORE →

China Dumps More US Treasurys

China dumped more US Treasurys in April, selling off another $7.5 billion in US debt, according to the latest US Treasury Department data.  This follows on the heels of the biggest US Treasury selloff by the Chinese in nearly 2 1/2 years in March. Over the last two months alone, the Chinese have dumped some […]

READ MORE →

China Urges International Community to Find Alternatives to ‘Weaponized’ US Dollar

In an opinion piece published yesterday, a Chinese government newspaper called for the international community to find alternatives to the global dollar system and warned “capricious actions” by the United States government could “ruin the future of the dollar itself.” This is yet another sign that the world is getting tired of the US weaponizing […]

READ MORE →

How High Can Consumer Debt Go Before the Bubble Pops?

Consumer debt climbed to a new record once again in April. The question is how much money can American consumers borrow before the bubble pops? Americans borrowed money at the fastest pace in five months in April, according to the latest Federal Reserve Consumer Credit Report. Total consumer credit increased by $17.5 billion. That’s an […]

READ MORE →

Comments are closed.

Call Now